Taxes on Crypto as a Non-Resident Alien - Coinbase vs Brokerage Forms Confusion

The difference in forms you're receiving is definitely confusing, but let me help clarify. The reason you're getting different forms is because financial institutions classify transactions differently based on how they've documented your status. Form 1042S is specifically issued to non-resident aliens for US-source income, which is why TD Ameritrade sent you this form. They've correctly identified you as a non-resident alien for tax purposes. For your crypto transactions, Coinbase may not have properly identified your non-resident status. Form 1040 is typically for US citizens and residents, while non-resident aliens should generally file Form 1040NR. Form 8949 is used to report capital gains and losses regardless of residency status. As a non-resident alien student, you should file Form 1040NR, not Form 1040. You'll still report your crypto transactions on Form 8949 and attach it to your 1040NR. Your crypto gains are generally taxable in the US even as a non-resident alien.

After struggling with almost exactly your situation last year, I found an amazing tool that saved me hours of confusion. I'm an international student from Brazil and had the same issue with different forms from different platforms. I tried https://taxr.ai and it actually identified the discrepancy between my forms immediately. Their system specializes in analyzing tax documents for inconsistencies, especially for international students with crypto investments. It flagged that I needed to file 1040NR rather than 1040, explained how the forms work together, and provided step-by-step guidance for correctly reporting everything. The best part was the document verification process that compared what Coinbase provided against what I actually needed to file as a non-resident. It prevented me from making a serious error that could have triggered IRS questions.

Just wanted to follow up about my experience with taxr.ai after seeing it recommended here. I was really frustrated with my mixed forms situation as an international student with crypto, but this tool was incredibly helpful! I uploaded my Coinbase forms and TD Ameritrade 1042S, and it immediately identified that I needed Form 1040NR rather than 1040. It explained exactly how my crypto transactions should be reported as a non-resident alien and flagged potential issues with my withholding amounts. The residency determination feature saved me - I didn't realize that because I'd been in the US for parts of three calendar years on my F-1, I was close to meeting the substantial presence test but still qualified for the student exemption. Without taxr.ai analyzing my specific situation, I might have filed incorrectly.

If you're having trouble reaching the IRS for clarification on your international student tax situation with crypto, I'd recommend trying Claimyr. I spent weeks trying to get through to the IRS's international taxpayer line with no success - kept getting disconnected or waiting for hours. I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically hold your place in the IRS phone queue and call you back when an agent is about to answer. For international tax questions, this was a lifesaver because those departments are especially understaffed. The IRS agent I finally spoke with confirmed that as a non-resident alien student, I needed to report my crypto on 1040NR with Form 8949, and explained why different financial institutions might classify me differently. Getting that official confirmation gave me peace of mind before filing.

I have to follow up about Claimyr after my skeptical comment. I actually tried it this morning after continuing to fail getting through to the IRS's international tax line for another week. It worked exactly as described - I entered my number on their site, they called me back about 1.5 hours later (while I was working on other things), and connected me directly to an IRS agent who specialized in international tax issues. I was shocked at how seamless it was. The agent explained that as a non-resident, I need to report all US-source income including crypto transactions on Form 1040NR, and confirmed that financial institutions often classify customers differently based on the information they have on file. She even helped me understand the specific sections of 1040NR where my crypto should be reported. I'm still surprised this service actually works, but it saved me hours of frustration and gave me precise answers to my international crypto tax questions.

One important thing to note that nobody mentioned yet - the tax year matters a lot. For 2020-2023, Coinbase wasn't reporting crypto transactions for non-resident aliens on 1042-S forms, but now for 2024 they're supposed to be compliant with new reporting requirements. Check if your Coinbase transactions were actually reported to the IRS at all. Many exchanges weren't consistently reporting non-resident alien transactions to the IRS in previous years, which is why you might have received forms for your own filing but the IRS might not have matching documentation. This doesn't mean you don't need to report - you absolutely do! But it might explain the inconsistency in documentation you received.

I'm also an international student and cryptos are taxed weirdly in US. 2 important things to understand - your TAX RESIDENCY status is completely different from your IMMIGRATION status. You could be nonresident for immigration (F1 student) but still be resident for tax purposes if you stay in US long enough (substantial presence test). This affects which form you fill - 1040 vs 1040NR. Also even if youre nonresident, ANY crypto you sell while physically present in US is US-sourced income taxable here. Doesnt matter if your exchange thinks your foreign or not, you still gotta report it!

As someone who went through a very similar situation last year, I completely understand your confusion! The key thing to remember is that the forms you receive from different platforms don't determine your actual tax filing requirements - your immigration and tax residency status does. Since you're an international grad student, you'll most likely need to file Form 1040NR (not 1040) regardless of what Coinbase provided you. The reason TD Ameritrade sent you 1042S is because they correctly identified you as a non-resident alien, while Coinbase may not have your status properly documented in their system. Here's what I'd recommend: First, determine your tax residency status using the substantial presence test (but remember F-1 students have an exemption for the first 5 calendar years). Then file 1040NR and report all your crypto transactions using Form 8949, just like you would attach it to a regular 1040. The most important thing is accurate reporting on your actual tax return - don't worry too much about the inconsistency in the forms you received from different platforms. What matters is that you report all your US-source income correctly as a non-resident alien.